KING AND QUEEN COUNTY PUBLIC SCHOOLS, VIRGINIA ESCO CONTRACT LEASING SERVICES

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1 KING AND QUEEN COUNTY PUBLIC SCHOOLS, VIRGINIA ESCO CONTRACT LEASING SERVICES Request For Proposals December 8, 2015

2 INTRODUCTION King and Queen County Public Schools wishes to execute an Energy Services Performance Contract (ESPC) with an Energy Services Company (ESCO) as allowed under Virginia legislation As such, the County School Division wishes to execute a lease agreement with a qualified lessor. Lessors shall be deemed qualified if they have contracted to provide equipment leasing to at least two (2) Virginia Municipalities within the past three (3) years. All proposals shall include a comprehensive description of the proposing lessor s company, their officers and their experience with Virginia municipal leases. All proposals shall provide at least two (2) Virginia municipal clients for reference purposes. All proposals shall be made to Joanne Wright via or postal service. Joanne Wright s address is jwright@kqps.net. Proposals are due by 4:00 PM on Friday, December 18, Address for submittals is King and Queen County Public School Board Office, Attn: Joanne Wright, 242 Allen s Circle, King and Queen Court House, VA The King and Queen County Public Schools reserves the right to reject any or all proposals. TERMS AND CONDIDITONS Through this RFP process the County seeks proposals from qualified vendors to lease certain capital equipment pursuant to the following terms and conditions: LESSEE: EQUIPMENT: King and Queen County Public Schools, Virginia Energy Performance Contract EQUIPMENT COST: Total Estimated Amount of $1,420,781.00; FINANCING STRUCTURE: Tax-Exempt Lease Purchase Not More Than Fifteen (15) Years Annual in Arrears Levelized Payments to eliminate negative cash flow years. Estimated Cash Flow below: RATE: TRANSACTION DATES: All proposals must disclose the proposed interest rate and must have a 30 day rate lock per project phase. The School Division expects to complete and execute an ESPC with a qualified vendor within the next (30) calendar days.

3 Selection of the Lessor is expected within the next (14) calendar days. The proposal shall anticipate that the formal credit approval will be pursued upon the lessor s receipt of the School Division s written proposal acceptance notice, the completed lease application, the lessee s financial statements and a completed lease contract. Lessor s credit approval process shall take not more than fourteen (14) business days. WITHDRAWAL DATE: The first withdrawal of funds is expected in late January, EQUIPMENT ACCEPTANCE DATE: OPTION AT LEASE EXPIRATION: NET LEASE: LEASE AMORTIZATION SCHEDULE: WARRANTIES: NON-APPROPRIATION: BANK /NON-BANK QUALIFICATION: FINANCIAL STATEMENTS: AUTHORIZED SIGNORS: Proposal should be based on both the assumption that any and all equipment and installation services will be delivered to and accepted by Lessee prior to December, At the lease expiration, the Lessee shall have the right to purchase the equipment for One dollar ($1.00); assuming the lease is not in default and all terms and conditions of the lease have been met. This lease will be a net lease transaction with maintenance, acceptable insurance coverage, taxes and any legal fees the responsibility of the Lessee. Proposed amortization schedules with separate principal and interest costs breakdown must be provided with the proposal. Proposals shall be only as to the provision of lease purchase financing for the purchase cost of the equipment. Lessor will have no responsibility to the Lessee or any other person for the selection, furnishing, delivery, servicing or maintaining of the equipment. All equipment manufacturer or vendor warranties will be passed to the Lessee under the agreement. The lease payments shall be subject to annual appropriation for each fiscal year. Lessee reasonably anticipates the total amount of tax-exempt obligations to be issued by Lessee during calendar year 2015 will not exceed ten million ($10,000,000.00) dollars. Lessee shall furnish Lessor with audited financial statements for the previous three (3) fiscal years and its current and previous year fiscal budget. The King and Queen County School s shall provide the lessor with evidence of its School Board Meeting action authorizing a lease agreement and shall designate the individual(s) to execute all necessary documents used therein.

4 DOCUMENTATION: ESCROW FUNDING: PREPAYMENT OPTION: BASIS OF PROPOSAL: All documentation shall be provided by Lessor, its Agents or Assignee, and must be satisfactory to all parties concerned. An interest bearing escrow account shall be established to make disbursements. The proceeds of the lease will be deposited into said escrow account. Interest earnings will accrue to the benefit of the Lessee. Any costs associated with the escrow account must be disclosed in the proposal. The Lessee wishes to have the option to prepay on any payment date the remaining balance. Any costs for said pre-payment must be disclosed in the proposal. All proposals should not be construed nor relied upon as a commitment. Such a commitment is subject to formal credit review, approval and execution of mutually acceptable documentation. The final contract, and not the proposal, will set forth the agreement between the parties.

5 King and Queen County Public Schools Energy Conservation Measures King and Queen County Public Schools ECM Table Construction Costs $ 1,420,781 Facility Name ECM Description Construction Costs Total Savings ($) x Central High School Lighting: T8 Retrofit $ 216,952 $ 20,575 x Central High School Building Automation System $ 95,524 $ 12,619 x Central High School Cooling Tower VFD and Loop VFD $ 153,527 $ 13,855 x Central High School ERV Repair with WSHP $ 69,943 $ (3,764) x Central High School Boiler Replacement $ 242,431 $ 4,079 Central High School WSHP Replacement Budget $ - $ - Central High School 50% WSHP Replacement Budget $ - $ - Central High School 25% WSHP Replacement Budget $ - $ - x King and Queen Elementary Lighting: T8 Retrofit Elementary and Bus Garage $ 82,992 $ 8,483 x King and Queen Elementary Packaged Rooftop Replacement $ 186,978 $ 8,913 x King and Queen Elementary Building Automation System $ 35,506 $ 10,585 x Lawson Marriott Elementary Lighting: T8 Retrofit with some Classroom Fixture Replacement $ 180,919 $ 8,496 x Lawson Marriott Elementary Building Automation System $ 29,805 $ 8,694 x Lawson Marriott Elementary Packaged Rooftop Replacement $ 126,204 $ 2,640 Totals $ 1,420,781 $ 95,175

6 King and Queen County Public Schools Financial Cash Flow over Term FISCAL POTENTIAL WORKSHEET King and Queen County Public Schools Capital Costs Rebates/Down Payments Net Financed Amount Interest Rate $ $ 1,420,781 1,420, % Proforma Cash Flow A B C D E F G H Term Year General Fund Reallocation Funding Sources Operational Allocation Total Annual Funding Production for Debt Service Program Costs Performance Services Annual Program Costs Comprehensive Annual Cash Flow 0 $ 28,553 $ 28,553 $ 28,553 1 $ 95,175 $ 10,000 $ 105,175 3,807 $ 122,194 $ (17,019) 2 $ 98,030 $ 10,000 $ 108,030 3,921 $ 122,308 $ (14,277) 3 $ 100,971 $ 10,000 $ 110,971 4,039 $ 122,425 $ (11,454) 4 $ 104,000 $ 10,000 $ 114,000 4,160 $ 122,547 $ (8,546) 5 $ 107,120 $ 10,000 $ 117,120 4,285 $ 122,671 $ (5,551) 6 $ 110,334 $ 10,000 $ 120,334 4,413 $ 122,800 $ (2,466) 7 $ 113,644 $ 10,000 $ 123,644 4,546 $ 122,932 $ $ 117,053 $ 10,000 $ 127,053 4,682 $ 123,069 $ 3,985 9 $ 120,565 $ 10,000 $ 130,565 4,823 $ 123,209 $ 7, $ 124,182 $ 10,000 $ 134,182 4,967 $ 123,354 $ 10, $ 127,907 $ 127,907 $ 118,387 9, $ 131,744 $ 131,744 $ 118,387 13, $ 135,697 $ 135,697 $ 118,387 17, $ 139,768 $ 139,768 $ 118,387 21, $ 143,961 $ 143,961 $ 118,387 25,574 Totals $ 1,798,704 $ 100,000 $ 1,898,704 $ 1,775,798 $ 43,643 $ 1,819,441 $ 79,264 *Financing Note Final Annual Debt Service payment will be adjusted so annual cash flow is positive or neutral every year